July 30, 2021
To whom it may concern,
Company name:
Representative:

Contact:

PACIFIC METALS CO., LTD.
Aoyama Masayuki, President
and Representative Director(Securities code: 5541 TSE 1stSection)
Matsuyama Terunobu,
Managing Executive Officerand Director(Telephone: +81-3-3201-6681)

Notice Concerning Recording of Non-operating Income (Share of Profit of Entities
Accounted for Using Equity Method) and Revisions to Financial Results Forecast
PACIFIC METALS CO., LTD. (the “Company”) hereby announces that it has recorded share of profitof entities accounted for using equity method under non-operating income for the three months ended
June 30, 2021 (April 1, 2021 through June 30, 2021). The Company also announces that, in light of themost recent performance trends, it has decided to revise the financial results forecast for the six months
ending September 30, 2021 (April 1, 2021 through September 30, 2021) and for the fiscal year ending
March 31, 2022 (April 1, 2021 through March 31, 2022) announced on May 11, 2021.
● Details of non-operating income (share of profit of entities accounted for using equity method)
The Company plans to record share of profit of entities accounted for using equity method of 949
million yen for the three months ended June 30, 2021 due to strong performance of entities accounted
for using equity method in the Philippines supported primarily by strong demand.
● Revisions to financial results forecast
1. Revisions to consolidated financial results forecast for the six months ending September 30, 2021
(April 1, 2021 through September 30, 2021)
ProfitBasic
Operating
Ordinary
attributable
Net salesearnings perprofit
profitto owners
shareof parent
Previously announced forecast (A)(Announced on May 11, 2021)

Million yen

Million yen

Million yen

Million yen

Yen

Revised forecast (B)19,77823,599(1,103)
(265)

14
1,520

(170)
1,157(8.72)
59.32

Change (B–A)

3,821

838

1,506

1,327

Change (%)

19.3

─

─

─

13,262

(53)

1,293

1,260(Reference) Results for the six
months ended September 30, 2020

164.62

2. Revisions to consolidated financial results forecast for the fiscal year ending March 31, 2022 (April 1,2021 through March 31, 2022)
ProfitBasic
Operating
Ordinary
attributable
Net salesearnings perto owners ofprofit
profitshareparent
Previously announced forecast (A)(Announced on May 11, 2021)

Million yen

Million yen

Million yen

Million yen

Yen

Revised forecast (B)42,98846,591(1,157)
(843)

1,215
2,106

968
1,685

49.63
86.40

Change (B–A)

3,603

314

891

717

Change (%)

8.4

─

73.3

74.1

32,217(493)

3,344

1,162(Reference) Actual results for theprevious fiscal year (Fiscal yearended March 31, 2021)

59.61

3. Reason for revision
With regard to the consolidated financial results forecast, the economic outlook remains highly
uncertain as COVID-19 continues to affect the domestic and overseas economies.
On the sales volume front, the stainless steel industry, which is the primary source of demand forthe nickel business, is expected to achieve more sales to a certain extent than those in the initial plan
because operations in Japan and overseas are recovering as contrasted with a certain period in thepast.
On the selling price front, the LME nickel price applicable to the Company, which is used as anindicator for determining the selling price of the Company’s ferronickel products, is expected toremain firm reflecting expectations for economic measures aimed at economic recovery in eachcountry.
On the procurement front, production costs are expected to be affected by higher level of raw
material prices and others, while the volume of raw materials will be secured to meet productionneeds.
Although the COVID-19 impact is expected to continue during the current consolidated fiscal year,
response measures to address such business environment are consistent with activities to beundertaken under the basic policies set forth in the Group’s Medium-term Management Plan, and theCompany will continue to strongly push forward with these measures.
Accordingly, the consolidated financial results forecast has been revised as described above. For
the underlying assumptions, please refer to “(Reference) Revisions to underlying assumptions.”(Note) The forward-looking statements including the financial results forecast contained herein are based on
information currently available to the Company, as well as certain assumptions deemed reasonable by theCompany. Actual results may differ significantly from these forecasts due to various factors.

(Reference) Revisions to underlying assumptions
Sales volume (t)Production volume (t)Applicable LME nickel

Applicable exchange rate

price ($/lb)

(¥/$)

1st

2nd

Full

1st

2nd

Full

1st

2nd

Full

1st

2nd

Full

half

half

year

half

half

year

half

half

year

half

half

year

Previously
announced
forecast (May 11,2021)

11,60013,40025,00011,765

13,057

24,822

7.63

7.52

7.58

104.37104.32104.34

Revised forecast

13,047

12,95326,00011,46913,54125,010

7.94

7.58

7.76

107.61106.40107.01(Reference)
Actual results forthe previous fiscal
year ended March
31, 2021

9,674

11,11920,793

9,374

9,040

18,414

5.94

7.07

6.54

106.06104.47105.212